How to set up an event company: Success criteria and pitfalls

Master’s degree thesis

LOG950 Logistics

How to set up an event company: Success criteria and pitfalls

Tina Lange Olsen

Number of pages including this page: 78

Molde, 27.05.14

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Date: 27.05.14

Preface

This master thesis represents and ending point of a five year long education, where I have spent the two final years at Molde University College. The Master of Science in Event Management has been a time of challenges, learning and growth.

The idea of developing a business plan and to look into success criteria for starting an event company as my master thesis, was initiated during the one year I spent working before I came to Molde University College. I became inspired by the business concept of the company I worked for, and some ideas of how to make some adjustments came to mind. Then, throughout my time in Molde I became even more certain this was a research project for me.

I wish to thank those I have interviewed during this research. They have willingly provided med with absolutely vital information, and this research would not have been possible without them. Then, I want to thank my supervisor Oskar Solenes. He has provided me with guidance and contributed to form my thesis. He has challenged me and given me appreciated help, especially during the last period of the research.

Lastly, I would also like to thank my dear family and friends, for their patience, guidance and good advice. They have supported me all through the process and given me valuable feedback when I have needed it the most.

Molde 2014, Tina Lange Olsen

Summary

The subjects researched in this master thesis, was chosen based on my personal wish to start an event company. Then, I wanted to contribute with research on the area of success criteria and pitfalls when establishing an event company. The research questions I decided on were;

How to set up an event company creating meeting arenas between solution providers and decision makers?

What can be identified as success criteria and pitfalls when setting up such an event company?

The literature applied in this dissertation addresses perspectives on business planning and further along perspectives on organizational structure, organizational culture, marketing and event management. In addition to researching the literature on the field, I have conducted interviews through a qualitative method with previous employees of the main competitor of the company I want to establish. These informants highlighted important aspects of success criteria and pitfalls, as well as differentiation and improvement areas.

The most important results was found in identifying success criteria and pitfalls, and the success criteria were identified as: the product itself, high quality events, possibilities of expansion and personal method of marketing. Then, the pitfalls found through this project were: lack of flexibility, focus on public sector, instability in the workforce and a one- sided marketing approach. The results of both researching the literature, and through the interviews have been implemented in the business plan. Concrete findings, analysis and conclusion can be read to its full extent in this dissertation.

Content

Preface ... 3

Content ... 5

Table of figures and tables ... 6

1.0 Introduction ... 7

1.1 Background ... 7

1.2 Research Question ... 8

1.3 Literature review ... 8

2.0 Theoretical Framework ... 10

2.1 Business Plan ... 10

2.2 What is the purpose of a business plan? ... 10

2.3 What should a business plan contain? ... 11

2.4 How to construct an organization ... 14

2.5 Organizational Structure ... 14

2.6 Organizational Culture ... 15

2.7 Organizational Culture and Competitive Advantage ... 16

2.8 Marketing ... 16

2.8.1 The marketing mix ... 17

2.8.2 Social Media ... 18

2.9 Area of Business: Event Management ... 19

3.0 Methodology ... 22

3.1 Research Design ... 22

3.1.1 Intensive design ... 22

3.1.2 Exploratory Design ... 23

3.2 The Qualitative Approach: Data Collecting ... 23

3.2.1 The Qualitative Approach: The Interview Guide... 25

3.2.2 The Qualitative Approach: The Sample ... 26

3.3 Analyzing data ... 27

3.4 Reflections ... 27

3.4.1 Research Ethics ... 28

3.5 Limitations ... 29

4.0 Findings ... 31

4.1 Products ... 31

4.2 Operating Market ... 32

4.3 Human Resources ... 34

4.4 Marketing ... 38

5.0 Analysis ... 40

5.1 Products ... 40

6.6 Outside: The Environment of Associated ... 57

6.6.1 Potential Market and Customers ... 57

6.6.2 Competitor ... 59

6.6.3 The Market and Future Trends ... 60

6.7 SWOT ... 61

6.7.1 Marketing and Sales ... 63

6.4.4 Marketing Plan ... 66

6.8 Plan of Action ... 68

7.0 Conclusion ... 70

7.1 Future Research ... 72

8.0 References ... 73

9.0 Appendix ... 75

Table of figures and tables

Figure 2: Event Management System (Getz,2005,53) ... 21

Figure 3: Organizational Chart: Associated ... 55

Figure 4: Internet and Social Media Marketing ... 67

Figure 5: Marketing Plan ... 68

Table 1: Expanded Marketing Mix for Services (Zeithaml & Bitner, 2003,24) ... 18

Table 2: Marketing Mix, Associated ... 65

Table 3: Plan of Action ... 69

1.0 Introduction

When choosing what to topic to write about in the master thesis, it was of high importance for me that the topic I chose would be something I was genuinely interested in, and that the thesis would be of use for me at some point. I sincerely want to start my own business one day and have had this idea for quite some time. The master dissertation then represented an opportunity for me to be able to develop a business plan, based on an idea of improvement and differentiation of another company’s business concept, which I have previously worked for. That was how the paper started out.

However, along the research process I decided to limit the business plan to research the aspects of product, organization and marketing along with description of business and market. Instead, the focus on success criteria and pitfalls increased. I saw this as a way of improving the dissertation itself, although the business plan is not completely developed.

Nevertheless, I also discovered during my research that the most fundamental and

important aspects of being able to set up a sustainable company, can very much be found within the structure and culture of an organization

1.1 Background

The business idea, shortly put is to start an event company where the core business is to create meeting arenas between decision makers in various industries with solution providers. This will not be a traditional event company as seen in the Norwegian event industry, whereas most event firms focuses on creating various types of events on contract for other companies. Instead, the idea is to create seminars and conferences as the

framework of bringing solution providers together with decision makers.

The business idea itself is based on the business idea of a company I previously worked for. I worked there for one year, and the company experienced some challenges in terms of

1.2 Research Question

This thesis has a two sided focus where as it on the one side mainly based on literature, will provide a business plan for an event company creating meeting arenas between solution providers and decision makers. Secondly, this project has researched success criteria and pitfalls to avoid when establishing this type event company. The pitfalls have had an important impact on the business plan, and the success criteria have been

implemented in it.

The research questions are:

How to set up an event company creating meeting arenas between solution providers and decision makers?

What can be identified as success criteria and pitfalls when setting up such an event company?

In this paper, the business plan for the event company will be constrained to mainly look into organizational structure, organizational culture, marketing, and product along with a market and business analysis.

1.3 Literature review

A variety of literature and research has been looked into when conducting this research.

This have mainly been theory of how to construct a business plan, marketing, event management and of organizations and its’ culture. For instance, the theory applied here on marketing are about how social media can be used and what type of perspective a business can have on social media. The theory emphasized how social media may be applied as a tool to create relationships with customers, and then further how it can contribute to achieve brand awareness, recurring customers and to reach new customers. Then, the literature of organizational culture along with how it can be a source of sustained competitive advantage reaches inward in the company and shows important aspects of building and keeping an organizational culture. Additionally, the literature focuses on how important a well-developed organizational culture is for a company. The literature of event management have brought light to important aspects of event planning, and more in-depth the level of flexibility needed in the various stages and processes of event planning. This literature has been important in enlightening the different areas of the thesis, and to

understand and analyze the findings of this research. However, it has been very challenging to find research conducted on all these areas combined and research

specifically providing these types of success criteria and pitfalls. Considering the lack of previous research taken into account, this research project provides a new combination of these areas and within a business plan setting as well. Though I haven’t been able to find similar studies conducted on the same areas, one cannot leave out the possibility of that similar studies exists. Still, if that is the case, this research may be seen as additional contribution in the literature field.

2.0 Theoretical Framework

In this part of the dissertation, relevant theory is brought forward with the intention of providing a better understanding of the framework of the research question. As this is a business plan, and a unique one, it has been a challenge to find relevant research. Yet, the theory focus on what a business plan should contain and further into those specific aspects.

Then, theoretical perspectives on organizational structure, organizational culture, marketing, event management along with a variety of models and tools of analysis have been applied.

2.1 Business Plan

Innovation Norway is considered the most important tool of the Norwegian Government for development and innovation of Norwegian industry and enterprise. Innovation Norway support entrepreneurs and companies at various levels, to enhance innovation. The

organization provides these companies or entrepreneurs with a support system including advisory services, network services, competence and promotional services. They combine business ideas with international networks and with local industry knowledge to create the basis of new successful businesses. (www.innovasjonnorge.no)

According to Innovation Norway (www.innovasjonnorge.no), a business idea describes the gap in the market to be filled, your target market and those aspects which makes you more capable of meeting this needs than others. Further, they stress how the business model should strive to describe how the business can meet needs and create values. The process of developing ones business model can be crucial in terms of separating oneself from others, exploit advantages and to achieve success in the market.

Further, they suggested that a business plan describes and is in fact a plan of action

explaining what is needed for the business model to achieve success. Further, the business plan may include an analysis of opportunities of innovation, aspects to be improved, weaknesses and strengths. (www.innovasjonnorge.no)

2.2 What is the purpose of a business plan?

According to Nunn and McGuire (2010) one of the main purposes to develop a business plan is for the founder. This is in the perspective of the developer, where the business plan is developed to give guidance in how the business should be developed and operated. In

other words, the business plan gives direct indicators on how to operate the business. Then, ideally with a fully developed business plan, it should also be purposeful in the perspective of possible investors or lenders where the intention is to attract these.

2.3 What should a business plan contain?

Altinn.no is the website of the Norwegian Government, and was established in 2003. They reach out to business in all industries and sectors in Norway, with a variety of services.

Altinn delivers tax forms as well as other electronic forms to both private individuals and businesses. Besides from economical and financial plans, they suggest that a business plan should include: summary, business idea, description of product and production, description of market, marketing strategy/pan, organizing and administration of the business and a plan of action. (www.altinn.no)

Nunn & McGuire (2010) proposed that the following sections should be represented in the business plan:

- Table of contents: The authors emphasize that one should keep in mind that the readers of your business plan, might want to read it in a different order than you wrote it. The table of contents should be structured in the perspective of the readers.

- Business Description: Here, factors such as core values for the business and mission of the business should be presented. Further, the facilities as is now is ought to be described. This description includes explaining why you would own or lease, how facilities are used in operating the business, yet brief. Next part, the business strategy should present organizational structure and surely what services or products your business offers. Then a discussion of which opportunities your business is able to exploit should follow. Here, point of leverage and how these

importance for them. Explain how your services or products differentiate from others, from the competitors.

- Management: A description of the management team of the business and how they will work as a group should be presented in a separated section. Key positions, who they are, their qualifications and what their contributions to the team should be outlined here. For those positions not filled, desired skills and personality attributes for those you wish to fill the positions are to be described. If the company needs advisors or consultants from outside of the company, these should also be included.

- Market and Business Analysis: Nunn and McGuire (2010) states this is one of the most important parts of the business plan. They say one should start with

developing an understanding of your business current state, and go into how your business is organized and what you are doing. Further, they suggest one should conduct a SWOT analysis for the company. This includes:

o Strengths: Describe and explain which aspects about your business make it strong.

o Weaknesses: Admitting ones weaknesses are crucial and should be viewed realistically along with a description of how one plan to overcome these.

o Opportunities: Identify what position your business can fill in the market and other opportunities for your company. Further and just as important, explain how these opportunities can be taken advantage of.

o Threats: This part is where one considers possible pitfalls, possibilities of what could go wrong. A description of these should be included along with how these threats may be met.

After conducting the SWOT analysis, the various aspects should be compared. Starting with comparing the business’ strengths to the opportunities and further show of the

strengths can be used to take advantage of the opportunities. Further, threats and strengths should be compared and then describe how strengths can be used to overcome the

identified threats. Additionally, opportunities should be compared to weaknesses, and further go into how you will take advantage of those opportunities and then be able to

reduce or overcome the weaknesses. The last comparison is threats to weaknesses, and then an elaboration on how one can overcome the weaknesses and threats.

The last part of this section is to describe competitors, analyze what they do and how.

Further, explain the differences between your business and theirs, and look into the possibilities of others starting a competing business.

- Business and Market Development: Here an overview of the labor market should be provided, with aspects such as; availability of desired skills and experience for the business. Look into if the planned product or service will demand costly or rare resources. Then characteristics of the market should be described, where possible future trends in the industry and market should be addressed, and what types of products and services will be attractive for representative customers. Describe further how this business can take part of the business already in the market. Show how a certain part of the customer base can be attracted so that the company can make profits. Handling risk may also be addressed here, and start off with

reviewing risk of failing and a following plan of controlling and reducing risk to the minimum.

Nunn and McGuire (2010) emphasize the importance of showing what the business is offering in terms of products or services, and further elaborate on how this will be done. Elements of differentiation, what separates your product from the competitors should be explained along with what makes your product or service unique and where value is added for the customer. Lastly, one should show how customers can get in contact with the business.

- Marketing and Sales: This part of the plan should include how to attract new customers and further elaborate on the marketing plan for the business. Then, how one wants customers to view and perceive the business should be described along

2.4 How to construct an organization

Jacobsen and Thorsvik (2006) suggested that an organization can be explained as a conscious constructed social system with the purpose of conducting specific set goals. In this explanation, social represents that organizations exists of people cooperating

combined. Further, this group of people works together and combined makes a unit limited from the outside environment and the group rely on these environment resources, which all together makes the system. Lastly, this group is conscious constructed, which refers to how this is developed in such a way someone believes is the most efficient.

Most theory that address organizations, claims a wish to clarify characteristics of an effective organization, and effectiveness can be described simply as what one is able to achieve related to the use of resources. If one is able to achieve goals, one has to act and assumptions are that attitudes and actions of people may be affected, changed and created by how the organization is. Jacobsen and Thorsvik (2006) refer to three different variables that explain and affect the behavior of people in organizations. The first one is what they call the formal characteristics of the organization, which is the organizations goals, strategies and structure. Second is the informal characteristics of the organization, which refers to the human factor, in other words, personal and social relations specifically referring to organizational culture and power relations. Third and last is the surroundings and environment of the organization.

2.5 Organizational Structure

In terms of the organizational structure of the business, various types exist in different businesses. This paper will present two different structures as those are seen as the most relevant for the business plan.

The entrepreneur organization: According to Jacobsen and Thorsvik (2006) this type of structure contains no support- or technological structure, but is based on a

management division and one operational part. This structure may be seen in organizations created by someone who strives for high level of control and whereas the organization is rather small. These characteristics are often followed by direct supervision as a method of coordinating and the manager makes the most decisions. Therefore, the decision making system is often centralized. As a result of this structure, division of labor may be unclear and lead to administrative challenges. Yet, this type of structure provides high level of

flexibility and gives the business the opportunity of handling customers more openly and quickly adapt to changes. Additionally, the structure will keep administration costs low.

The innovative organization: This type of organization contains a structure of network for authority, communication and control where assignments are rapidly adjusted and redefined according to needs. Further, division of labor is simplified and

communication flows both horizontally and vertically, depending on what is needed. This form of structure is rather unclear which in turns brings innovation and creativity forward.

Innovative organizations has a high level of flexibility, knowledge and competence are taken advantage of, and are often characterized by a high level of coordination. However, unclear levels of authority may bring out frustration and insecurity in the business.

Although there are various types of organizations, most real life businesses are a mix and rarely, if ever, exist of solely one type. Organizational structures are formed by people and can be in nearly any form. Jacobsen and Thorsvik (2006).

2.6 Organizational Culture

Schein’s (1990) perspective on organizational culture is that it must be built over time, where a given group of people build a history given certain stability in the group. Further, he states that culture cannot be built if there is no common history or if the turnover of members in the group is high. Schein (1990) defined organizational culture as:

Culture is what a group learns over a period of time as that group solves its problem of survival in an external environment and its problems of internal integration. Culture can now be defined as (a) a pattern of basic assumptions, (b) invented, discovered, or developed by a given group, (c) as it learns to cope with its problems of external adaption and internal integration, (d) that has worked well enough to be considered valid and, therefore (e) is to be taught to new members as

company and to see meaning of values in relation to how the organization is established, changed and kept.

When starting a new company and establishing the organizational culture, developing a sustainable and wholesome culture will be the main focus. Management and the actions of the management are very significant as this is about how the culture is communicated.

Further, a variety of tools may be used in order to socialize the employees into the

ideology and values of the organization. A continuous focus on values, HR polices, focus on purposes and guidelines are all examples of such tools that can be applied.

Development of the formal structure as a living framework of the organization can be used as an instrument to form the culture as well. (Jacobsen & Thorsvik, 2006)

2.7 Organizational Culture and Competitive Advantage

Barney (1986) developed a theoretical framework where he stated that three conditions must be fulfilled for a company’s culture to be able to provide sustained competitive advantage. The first one is about performance leading to high margins, high scales, low costs or other ways of adding financial value to the company, which he referred to as; the culture must be valuable. In other words, to produce such performance the culture is dependent on having positive economic consequences, as creating financial value is an economical concept. This condition is a requirement to achieve normal economic or even high economic performance. However, the culture and company cannot be a foundation of sustained or superior financial performance if the culture allows behavior that is

inconsistent with the competitive situation of the company. The second condition address rarity of the culture, which means that certain qualities and features of the culture are of a kind the culture does not have in common with many other companies. Lastly, the culture has to be imperfectly imitable. Shortly put, this means that if any other company tries to copy or imitate the imperfectly imitable culture, that company will be at some kind of disadvantage in comparison of the company they strive to copy. (Barney, 1986)

2.8 Marketing

Marketing is, according to Ottesen (2005) about developing a good strategy towards convincing the customers to buy what the business offers. Marketing represents

communication of the product or service to the market and how to combine methods of

communication and offers. The author emphasizes the importance of being able to deliver a competitive offer to the market.

2.8.1 The marketing mix

Zeithaml and Bitner (2003) defined the marketing mix as the combination of elements needed to enable communication with and satisfaction of customers. The mix is necessary for any organization and the elements represent those the organization can control.

Services and events are characterized by being simultaneously produced and consumed, where customers are an important part of the process of the service production. The customers are present at a venue and they interact directly with the personnel of the event.

Further, customers may seek tangible reminders, as services and events can be defined as intangible, to achieve an understanding of the service experience. This means, taken the perspective of the customer into consideration, that marketing events and services includes using additional aspects to communicate with customers. And more importantly, satisfy them. Then, Zeithaml and Bitner (2003) argued that the original four P’s should be expanded, based on the acknowledgement of adding these variables of communications.

As shown in the table below, the expanded marketing mix will then also include process, people and physical evidence.

Product Place Promotion Price

Physical good features Quality level

Accessories Packaging Warranties Product lines Branding

Channel type Exposure Intermediaries Outlet locations Transportation Storage

Managing channels

Promotion blend Salespeople: number, selection, training, incentives Advertising:

targets, media types, types of ads, copy thrust Sales promotion

Publicity

Flexibility Price level Terms

Differentiation Discounts Allowances

People Physical Evidence Process

Employees: recruiting, training, motivation, rewards, teamwork Customers: education, training

Facility design Equipment Signage

Employee dress Other tangibles:

reports, business cards, statements, guarantees

Flow of activities:

standardized, customized Number of steps: simple, complex, Customer involvement

Table 1: Expanded Marketing Mix for Services (Zeithaml & Bitner, 2003,24)

2.8.2 Social Media

Chaney (2009) considers social media as not only a new method of marketing, but also a new way to get connected to one other. Mainly, this is about starting conversations, something very different from clicking an advertisement or watching an advertisement on TV. Social media has the ability to bring people closer to one another, instead of a

traditional consumer seeing and advertisement based one-way communication. Further, he explained how marketing in this matter has turned from creating messages directed to the target audience, to actually participate in communities relevant for your business. His perspective is on how social media, in fact is about building relationships, not a campaign or a marketing channel. Social media brings forward starting and joining conversations.

One should acknowledge the customer and recognize that the customer is a part of a co-

creation, and treat the customer as a partner. Chaney underlined this very explicit, "its business gone personal" (Chaney, 2009, 42)

2.9 Area of Business: Event Management

Events are a temporary happening, and Getz (2005) specified that planned events are, in advance organized and made public. Events are supposed to have a finite length and this is accepted and expected by people. This is in fact, a vital part of why events are attractive and makes each event unique. When the event is ended it cannot be experienced ever again. Even, as several events are repetitive, the exact same atmosphere and experience cannot be recreated. Program, venue, setting, people and management may and are often changing even with repetitive events. The definition of all planned events given by Getz (2005) is:

Planned events are temporary occurrences with a predetermined beginning and end.

Every such event is unique, stemming from the blend of management, program, setting and people.(Getz, 2005, 16)

According to Yeoman, Robertson, Ali-Knight, Drummond and McMahon-Beattie (2009) there are four main stages in development of events in event management: decision, detailed planning, implementation and evaluation. As every event is unique, each stage has a relative importance due to type of event and can be very different. The order of these stages may vary as well, as of the purpose and nature of the event.

Figure 1: Four Major Stages of Event Development (Yeoman et al. 2009,15)

Getz (2005) argued that event managers need to act and think systematically, as events do not occur isolated, and each management task impinges on others. The event management system is shown in the model below, and the model shows a system of elements which all are interacting or interdependent. This means that the event and its management will be affected by changes in environmental factors, and the event's effect on the environment, economy and the community is equally just as important. Therefore, it is central for managers to fully understand these dynamics of interdependencies and be able to expect changes, and then be flexible enough to adapt. The author defines this as an open system model, dependent and affected by the surrounding environment.

Figure 2: Event Management System (Getz,2005,53)

3.0 Methodology

This part of the dissertation will give insight and information on how the research process has been conducted. From start to end, what decisions have been made at different stages in the research project will be explained in this chapter.

3.1 Research Design

The methodology chosen here is divided between two parts. The first one was chosen to fit the development of the business plan, and the part of the research question; How to create meeting arenas between solution providers and decision makers. Here, previous literature on the subject has been applied along with secondary data needed to complete the chosen sections of the business plan. Considering the research question, and where no or few former studies have been conducted on this subject, I have chosen what Leedy and Ormrod (2013) called exploratory design, as this method may fit the research best. Secondly, to identify success criteria of operating this type of event company along with pitfalls, differentiation areas and improvement factors, what Jacobsen (2000) refers to as a qualitative research design has been applied. This research method was chosen to carry through interviews with a selected group of previous employees of the key competitor, where I myself previously have worked. The business plan is then a result of both methods, where the identified success criteria, improvement factors and areas of

differentiation have been implemented. As mentioned earlier, the business plan developed has been limited and contains these sections: business description, products, organizational structure, organizational culture, surroundings, SWOT and plan of action.

3.1.1 Intensive design

The intensive research frame is characterized by going in depth into certain and a few units, or informants. Here, the intention is to gain an overall perspective of a phenomenon, which means that all nuances and details should be brought out to light. To go in depth to a phenomenon often has the intention of bringing out individual varieties and differences that exists in the understanding of the subject, as well as bringing out similarities.

(Jacobsen, 2000) In this case, this research may fit well as I seek information and knowledge about the main competitor, and especially how the individuals experienced working there.

3.1.2 Exploratory Design

Exploratory research design are often used, when very few or none at all has researched the subject earlier, as the method provides insight and creates and understanding of the chosen subject. This design is very flexible, but yet it may be a rather unstructured process.

(Leedy & Ormrod, 2013) In this paper, this has been the first part of the research method, where previous conducted research has been applied to develop the business plan. Further, secondary data has been collected, hereby statistics to gain information on possible market and customer base.

Jacobsen (2000) stated that an explorative research question will need a method that can bring out data with nuances, a method that allows one to look deep and a method that is flexible and open for the unexpected. In other words, with an explorative research

question, you need a method that will highlight the nuances which in turn demands a focus on few units, and therefore with a qualitative approach.

3.2 The Qualitative Approach: Data Collecting

As the qualitative research approach was chosen, the next step was to decide how information should be collected. Firstly, there are the primary data which brings in firsthand information through interviews of different kind. Then there is secondary data, where one looks into previously conducted research on the chosen subject or applies for instance statistics. An important part of the process, addresses how to choose informants.

This is about who the researcher wants to talk to or observe. How to analyze the data that is gathered follows as the next step, and this is when one decides how the data should be treated and put in system to be able to use it properly. The results should then be analyzed, considered and interpreted. Final and last stage includes final addressing of results, and conclusions are drawn. (Jacobsen, 2000)

It is important to keep in mind that the choice of data collection method, affects the validity of the data as it may be discussed if the method itself is a good fit for the research problem. Further, the chosen method may affect the reliability of the data, as all methods are selective in terms of gathering of information, where some information by the nature of the method are excluded, and as the method itself may affect the results in a certain way.

(Jacobsen, 2000)

Open interview has been chosen in this research. Now, Jacobsen (2000) states that this method will be a good fit if the research is cohesive with the follow assumptions:

1. "When few units are researched". In this matter, eight persons have been

interviewed. These informants are all previous employees at the main competitor for Associated. Further, the author emphasized how this may be a rather time consuming process, both conducting the interviews and handling the data

afterwards, therefore few informants may be preferable. The interviews have been carried out through telephone, as it requires less resources considering the

informants are located in various places of Norway and Europe.

2. "When we are interested in the opinion of each individual". Open personal interviews are individualizing as it brings out preferences and opinions of each interviewee. This research project and interviews pursues to figure out the opinions of previous employees, to bring out success factors and aspects that may be

improved in a similar company. Each and every individual's opinion is therefore significant, also to see the differences between various operating markets and their preferences.

3. "When we are interested in how the individual interpret a phenomenon". This assumption is quite similar to the previous one, and means that individual interviews fits well when one want to bring out each individuals perspective and interpreting of a phenomena. In this research, it can bring out important

information, to obtain the perspective and interpretation of previous employees on the success and challenges of the main competitor.

According to Jacobsen (2000) there are several reasons for why the interview should be conducted face to face. It may be easier for individuals to discuss themes face to face mostly because it is easier to achieve a level of personal contact, when both people are

physically sitting together. A phone interview on the other hand requires fewer resources and is less costly to carry through. Further the phone interview provides a way of

interviewing which may let the interviewee behave and response more naturally,

unaffected by the physical attendance of the interviewer. Although, it may have been ideal to conduct the interviews face to face, phone interviews have been chosen in this research project. As the interviewees are geographically far away, situated various places of Norway as well as locations in Europe, phone interviews seems to be preferable. This research project have had limited resources and to travel to interview each interviewee face to face would have been too costly

3.2.1 The Qualitative Approach: The Interview Guide

An interview guide has been developed to apply when interviewing the informants.

Jacobsen (2000) specified that the interview may be completely open, structured or somewhere in between. The author further suggested that the interview should not be completely open, as it is important to choose some themes one wants to gather information about. On the other hand, a completely structured interview with given options of answers, may not be preferable as it may act as a barrier for collecting information. He suggested that developing an interview guide can be preferable; to be able to have an aim for the interviews, yet leave a possibility open for the informant to bring out additional

information. For this research project, this aspect has been very important. Although, it has been developed an interview guide with a set of head themes, what the informants may bring out as additional information can turn out to be significant. The interview guide is divided into the following main themes: operating market, product, HR and marketing.

These four areas have been chosen as I considered them as important possible

improvement areas, and areas of success and opportunities of differentiation. Further, the questions is developed in order to bring out information about the organization and its’

culture, which can be just as important.

3.2.2 The Qualitative Approach: The Sample

Regarding selection of informants, Jacobsen (2000) suggested to first of all gain an overview of all possible informants that fits the criteria of the phenomenon one is researching. Then, one must try to define the theoretical population one is seeking as informants to ones' research. In this research project, that would technically be all those who ever have worked for the main competitor. Further, Jacobsen (2000) stated that one needs to establish some criteria for selecting informants. These may be controlled by the purpose of the research, what type of information one is looking for and why. A conscious approach to which one is interviewing is of importance. What type of information that is gathered, depends on who one is talking to. The criteria of selection are, according to Jacobsen (2000) random selection, width and variation, information and what’s typical.

The author then underlined how one does not need to use random methods, but rather base the selection on a more conscious decision and then choose some informants. Not based on them being representative or gives a perspective of width and variety, but because they can provide the researcher with particular and interesting information. This method seems to fit this research quite well, as I am looking for information on how the concept of the main competitor can be changed, improved and where the success criteria and pitfall can be found. This brings the next criteria of selection, information.

Choosing informants based on the opinion that these people may provide good and in- depth information of the subject can be a valid decision. This may be, and preferably are persons who are willing to give away information and with knowledge and experience of the subject. This may not be easy to use, as one need to know how good sources of

information the interviewees are. (Jacobsen, 2000) The interviewees chosen for this project are individuals I have worked with, which means I know they have information and

knowledge about the subject I am researching. Further, the informants could have been employees for this company now, but it might have been rather difficult to get access to the same type of information, due to loyalty issues. Therefore, previous employees have been chosen. Then, it was important to me to have both employees whom worked for the Norwegian market and employees whom had worked for other European markets. This is because, along with working closely with the Norwegian team, sharing managers, these other teams had been operative for several years in opposite to the Norwegian, which can provide other aspects of information. Then I believe it is of interest of the results, to see

both the opinions regarding the Norwegian market and those of other markets within the same company.

3.3 Analyzing data

The process of analyzing the qualitative data has been conducted through three phases, as described by Jacobsen (2000):

1. Describe: This phase covers a description of the collected information. In this dissertation, this is presented in the findings chapter, to provide a profound overview and insight in the material from the interviews.

2. Categorize: In this part, the information is divided and categorized to be able to gain an overview of the information. The information has been categorized in both findings chapter and the analysis in this paper. These categories are: product, operating market, HR, organization and marketing. These categories have been selected to provide information to enlighten success criteria, pitfalls, and improvement and differentiation areas.

3. Collect: As the information is placed in system, next step is to interpret the data. In this phase, one should look for the indirect data and often the most interesting part.

This final part of the analysis and discussion chapter provides a discussion of the information and the literature framework.

3.4 Reflections

Considering the sample and method chosen for this research project, a few aspects may be important to reflect about.

First of all, none of the interviewees were employees on a manager level. This means, the

the company could have provided a more wholesome picture and deeper insight in the

‘why’s’ of the key findings.

Secondly, all the interviewees are previous employees of this company. As earlier mentioned, due to loyalty for the company this may be preferable to be able to collect more information on the matters. On the other side, this may also mean that all the interviewees has either chosen to leave the company or been let go, which can indicate they may be predisposed with opinions of the company and colored by their experiences.

Then, the information they bring forward is likely subjective as a result of this and may be effected by their feelings towards the company, of whichever art that may be.

Thirdly, as the researcher in this project and myself a previous employee at this company I may also be colored with certain opinions and feelings for the themes being researched within the company. Ideally, I would have been completely objective, as my previous employment and experiences with the company may have had an effect on the research.

On the other hand, it is very much because of my personal experience with this company, I got inspired to do this research project.

3.4.1 Research Ethics

When conducting this research project, certain ethical aspects has been taken into consideration. In terms of the informants, they have all been provided with information about the research project, what its purpose is, what the information will be used for and who may be able to read the finished product. Further, they have been made aware of the intentions of interviewing them in particular. They have been given a type of anonymity they requested and were satisfied with, where no names have been mentioned in this project or as to which period of time they worked for the company in matter. This means, in this dissertation the informants are referred to by a given number and the company they worked for, which are the main competitor have been given a faux name. Information gathered from the company’s website, about the company, has been presented without reference intentionally, and cannot be found in the reference list either. The informants have stated that they were comfortable with providing the information, and as the interviews were conducted during a phone call, this was recorded and deleted three days after the interview.

3.5 Limitations

This research project has some limitations and delimitations. Limitations may be seen as weaknesses of the research and methods chosen. Delimitations can be explained as boundaries set to limit the scope of the research project (Simon, 2011). Some of the

limitations have been discussed already, in the reflection section. A delimitation set for the business plan, is that this paper have focused on the aspects of business description,

products, organizational structure, organizational culture, surrounding environment, SWOT and plan of action. It has then been chosen to leave out economical and financial aspects, and from a researchers’ perspective these have been considered in this case, as not the most interesting factors. Then, it is my opinion that this has improved the dissertation, by maintaining focus on analyzing aspects of the organization. These are in turn valuable factors, and have revealed vital areas of improvement and differentiation along with success criteria, that have been implemented in the business plan. Surely a fully developed business plan includes economical and financial aspects however, that has in this case been left for a second process at a later time.

In terms of methodological choices, one may argue that ideally the interviews should have been conducted face-to-face, however I did not have the required resources. Further, from an ideal methodological perspective, the interviews should maybe been written and sent back to the interviewees for approval. Unfortunately, there was not enough time to do this, but in an ideal situation this should have been done. As this research has been conducted over a five month time period, some boundaries have been set. The group of informants may ideally include individuals from all levels inside the organization the project has looked into, and from all functions of the company. Gaining information from the market division, financial division and moreover the management group could have provided important and a different type of information. Some of the aspects brought out by the informants here, may have more meaning or are founded on strategic decisions which this

there now, due to loyalty issues for the employees. Further, expanding the sample with more employees from various divisions and at managerial level would have demanded more resources, and even a shift in focus of the research. Additionally, it was of importance to be realistic in terms of which individuals would take the time and let themselves be interviewed, where the chance increased for those who were previous colleagues of mine.

4.0 Findings

This section provides a description of the collected information given by the interviewees.

These findings have been structured in a systematic matter, to be able to bring out the new knowledge of the results.

4.1 Products

This part of the interview guide was developed to research the products of the company, and various aspects of these. First of all, the informants were asked how they experienced the products were received by decision makers and solution providers. Six experienced acceptance, and that both group of customers liked the products and business concept of the company. However, two of the informants stated it was dependent on the program of the event and that some of the decision makers were not too eager to participate. As one of them said:

Very much depending on whom it was. For some companies this was right up their alley, for others, didn’t have the need for attending at our event, and a lot of time was used at persuading them to attend, or at least say yes. (Interviewee #1) Then the next question was what the opinions the interviewees themselves had of the products. All eight said they thought very highly of the products and the business idea behind. One of the interviewees described it as: “When well executed, these products are really good and provide benefits to all involved in the process.” (Interviewee #8). The informants also described the products as very solid and unique and all informants stated that the events were very professional, and executed with a high level of quality. However, two of the Norwegians stated the products lacked some flexibility and room for

adjustments.

are spending a lot of money just to set up meetings, that’s why the idea is brilliant. But there are larger lumps of money to harvest from this.” (Interviewee #1)

4.2 Operating Market

The first part of the interview contains questions about the employees’ previous operating market. Operating market means which country team they worked for, here five of the informants worked for the Norwegian team while the other three worked for other European teams. First the informants were asked how they felt the company was able to position itself in their market. Here the answers were rather similar, as all eight informants meant that the company was able to position itself as a leading provider of their product.

Also, the Norwegian informants emphasized that the company had no competitors delivering the same products as they did and that this brings additional value to their position. Further, two of the Norwegian informants also pointed out that as new in the Norwegian market, the company was able to grow and had an increasing amount of upcoming events.

Secondly, the informants was asked how the company could have improved its’ position in the markets. Here, six of both the European and Norwegian informants mention social media as a tool to raise awareness and then be able to increase number of decision makers and solution providers participating. This aspect was also brought out as a method of increasing customer loyalty, which in turn could improve the company’s positions.

Further, three of the Norwegian informants mentioned keeping focus on the private sector as a key aspect to improve the market position. They explain how the public sector has been challenging due to Norwegian law and regulation in terms of purchasing, and that therefore it is difficult to attract both decision makers and solution providers in particular to the events. All European informants brought up the factor of flexibility when planning and developing the events. As a given structure are applied on all events across markets and industries, their opinion was that to be able to adjust the events according to culture of the country and different industries approached, would have been beneficial to improve market position. As one of the informants stated:

“The company’s power and achille's heel is that its events have the same structure

everywhere. That provides a clear framework of tested tools with which to build an event.

However, it doesn't allow for any flexibility.”(Interviewee #2)

A Norwegian interviewee also said that maintaining a high quality level on the events is very important. Instead of going through with every event regardless of number of decision makers and solution providers attending, keep the focus on quality and maybe then rather cancel that years’ event and develop an improved one the year after. All of the Norwegian interviewees and two of the European, elaborated on stability in the workforce as a key point to improve the market position. Better allocation of resources, hereby employees and the management of employees were mentioned by both group of

interviewees. This was further explained by focusing on cooperation between employees and functions, and more precise and stable management structures.

Then followed the question of what the informants could identify as the main challenges for the company in their specific operating markets. Here, the factor of focusing on public sector was repeated by three Norwegian informants. Further, four Norwegian informants stated that the company had no brand equity and needed to become more known in the market and that this was a vital challenge for the company. Three informants among both Norwegian and European pointed out the company’s rigid and inflexible method of building events as a crucial challenge that created obstacles in the working process and success of the events. This was also mentioned as a factor in meeting with solution

providers and decision makers both in the development of the events as well as during the events, as customers experienced the inflexibility themselves.

Next was the follow-up question of how the company could overcome these challenges.

The overall finding in this particular question was as six of all informants (both Norwegian and European) stated that increased flexibility was a key factor. This flexibility was

referred to and related to several aspects such as: working processes, planning of events, management style, reaching out to customers, event programs, conducting the events, handling decision makers and solution providers, the structure of the events. One of the informants concluded:

Better allocation of resources was also mentioned, by three European informants, where they suggested to focus more resources towards difficult events instead of keeping same structure at all times. Three Norwegian interviewees also suggested becoming more known in the market, where social media are suggested as a tool. This aspect was also brought up by two European interviewees, to apply social media as a tool of branding and increasing brand awareness and knowledge in the markets. Keeping focus on private sector and leave the public sector out of the business was seen as the only way to overcome the challenge public sector represents, by the Norwegians informants.

The last question in section was related to success criteria, and what the informants considered to be the success factor in their respective operating markets. Here, all of them explicitly pointed out that first of all, the concept of the company is unique. As stated by one of the interviewees “..has an excellent product to offer!”. (Interviewee #6) Then followed the aspect of very well organized events, which were claimed by half of the informants. In addition, three pointed out the process from the personal invitations to the implementation of the events as a key factor, and that they have developed: “A pretty easy plug-and-play format that requires less organization than that of its’ competitors”

(Interviewee #5)

4.3 Human Resources

The third section of the interview guide contained questions about the management of human resources, to gain an insight into the organization and its’ culture. First question in this part was intended to clarify whether the interviewees considered the workforce of the company to be stable or unstable. When asked this, seven out of eight interviewees considered the workforce to be unstable and one of them explained:

Very unstable. People come and go. Management structures are opaque and the company is constantly changing, not always in a good way. Sometimes it felt like changing for changing’s sake. (Interviewee #2).

Those who considered the workforce to be unstable all explained further that ‘cold’

management and an inflexible organization was the reason behind. Further, the informants talked about a rigid system with a very strong focus on results, placing high pressure on employees. High pressure then led to stress in the working place, and according to one of the informants: “The reprimand for not achieving results created a culture that did not

emphasize common, mutual dependency.” (Interviewee #3). This factor was also brought forward by other informants, which claimed the internal communication was less than optimal and that the decision making process worked top-down and never the other way around. One of the Norwegian interviewees stated it was very difficult at times to be motivated, especially as it was very problematic to fulfill the requirements set for the employees. Two Norwegian interviewees spoke of a rigid, result- oriented, inflexible organization with a very hierarchical system, which was difficult to work in.

Communication with managers was challenging, and the informants felt they quite often were not listened to. However, two of the European informants pointed out that training and mentoring lacked efficiency and that even recruitment procedures lacked in screening candidates. Further the same informants indicated that all these factors of strong focus on results, was based on a way of thinking with the intention of maintaining a workforce with high results. As one of them said:

The company is set up so there is high turnover. It wants to get rid of its least productive employees all the time and hire new people hoping a constant cycle will improve the workforce. (Interviewee #2).

The same interviewee pointed out how it was to develop inside the organization, and climb the company ladder:

Vertical growth opportunities were limited. A select group of, albeit qualified, people fill the top positions and growth into those positions is not only rare, but most changes at middle and top management level are a mere shuffling of the deck chairs. With the same people moving around.(Interviewee #8)

The one interviewee who considered the workforce to be stable operated in a European market, and when asked for the reasons behind this consideration, the interviewee answered:

Next question addressed the same theme, and the interviewees were asked what they saw as the reasons for the rapid change in the workforce during the first operating year of the Norwegian market. In addition to the reflections on the previous questions, issues of cultural reasons were pointed out by two of the informants as none of the team leaders were Norwegian. This along, with rapid changes in the leadership of the team made the working situation challenging according to four of the Norwegian informants.

After researching the reasons behind instability in the workforce, the informants were asked what they believed the company could have done differently to ensure a more stable workforce. Here, two of them meant a focus on smaller goal achievements instead of only larger results combined with a more realistic perspective on targets, along with more positive feedback to the employees. Again, flexibility was brought forward where three Norwegian interviewees claimed a more flexible organization and a less rigid system could have improved the situation. If the organization had showed more appreciation and

listened more to the employees combined with an overall change in focus on human resources, could have ensured a more stable workforce according to the same informants.

To get a better view of and insight in the organizational culture, the interviewees was given a question of how they experienced the working environment. Here, five of both the Norwegian and European interviewees claimed that between employees they experienced a good working environment. They talked about a social environment, with high degree of loyalty between the employees as well as solidarity. However, as one of the interviewees said: “In my opinion, this is a workforce united, to a large extent, against the ‘man’ in this company. So, that bit of the working environment is exceptionally good.” (Interviewee #2) It was also pointed out by the same informant, that the company made it possible for the employees to be social by taking steps to improve the corporate culture and they created informal moments for employees to get together. Yet, six of all informants stated they were not happy during their working period, and elaborated on how they did not feel appreciated, the pressure on results was very high as well as they felt the chance of being fired, all combined caused a great deal of stress.

At first in awe of the perks, the camaraderie yet the competiveness, but it fades all too soon when the only thing that really seems to matter are results (sales) and how they reflect on those above you in the hierarchy. This is only reinforced with a

shallow yearly award show for employees only, based on sales or potential sales mostly. (Interviewee #5)

The interviewees were also asked how they felt the company treated its’ employees. Three of the Norwegians said they were treated with cold shoulders, and two of these said they were not supported enough when performing their job. Four informants felt an existence of a double standard, as explicitly pointed out:

Very often with a double-standard. As a company that prides itself on being

‘internationally-minded’ there were quite some differences between foreigners and natives, but it often also felt a select few were protected from any failings while held as an example for others. Often, those who were struggling were shunned, marked expendable and usually it did not take long before leaving the company.

(Interviewee #5).

On the other side, three felt they were treated ok, merely rough yet fair. One of the interviewees explained it like this:

In a way, I feel like the company has done nothing wrong to me personally. In the beginning I was given clear instructions and all the guidance and time I could hope for. I was given chances to grow vertically as well. My decision to leave was because it is not a job that I wanted to do, for an organization I felt very little sympathy for, in an industry that I didn't care much about. In retrospect, it surprises me that I stayed that long. (Interviewee #2)

Still, many of the interviewees exploited strong feelings and opinions of this: “Some colleagues of mine, however, have been treated abysmally. Though I want to stress that that was a very small number of people.” (Interviewee #2)

interesting entry-level tasks, yet they are set to do the same every day, and this trainee scheme has been used as a tool to decrease cost. (Interviewee #3)

4.4 Marketing

The second section of the interview contained various aspects of marketing. The company do not market themselves besides personal invitations carried through by telephone, to both decision makers and solution providers. The first question was developed to reveal what the informants considered to be the advantages of such a marketing strategy. Six of them emphasized the aspect of staying in control of who may attend the events. This was brought out as important, to be able to maintain high quality on the events. Secondly, accuracy and a personal touch were mentioned as a great advantage of this type of

marketing, which the informants meant makes an important difference. As stated by one of them: “You are in complete control of the level of importance of your invitees”

(Interviewee #5). Three of the Norwegian interviewees meant the cost efficiency of this approach was very valuable in terms of marketing along with the effect of word of mouth.

When asked to consider the disadvantages of this marketing method, several factors were brought forward. Here, three Norwegian and one European interviewee elaborated on the fact that it was challenging and difficult to achieve attention and knowledge of the events, only applying this method. As one of the interviewees said: “It’s hard to create a media buzz around the events this way” (Interviewee #8). The challenges of creating and building a brand, to become well known in the market were not easier overcome by this method alone, according to the informants. Further, to be able to achieve a position were decision makers and solution providers reach out to the company to attend the events demanded a richer marketing strategy. Also, five pointed out that one takes the chance of losing potential decision makers and solution providers, as being dependent on only phone invitations as marketing. They explained that one rarely was able to reach all relevant decision makers or solution providers during the planning and invitation period.

After this, the informants were asked if they considered this approach to be adequate in terms of attracting both decision makers and solution providers. Five specified this

depends on the market situation, as where they have certain markets they have operated for eight to ten years, this approach was adequate. However, they also pointed out that for new markets, like the Norwegian one this is different. As time should be spent on building

brand equity and to get acknowledged in the market this approach alone was not enough.

One Norwegian interviewee stated this approach was not sufficient at all: “ No. The events would have benefited from being advertised more, to build the brand and to become well known in the market, to create and keep interest” (Interviewee #7). Three Norwegian interviewees stated that this market approach was insufficient and should have been combined with other approaches as well and specifically, more aggressive marketing methods in a market entry situation. They also shared the opinion that if applying

additional methods, they clearly would have been able to attract more decision makers and solution providers to the events.

As a follow-up, the informants were asked which additional methods of marketing they saw as beneficial to implement. When given this question, five of them claimed social media should have been used as a marketing tool. More specifically, they mentioned Facebook, Instagram and Twitter to enhance visibility and interest, and as one of them said: “There could be an event forum on which both the organizers and the participants could post topics and have discussions” (Interviewee #6). Two informants had no suggestions of additional marketing tools, and one mentioned advertising in business newspapers as a way to bring the marketing further.